John Davis, a Manager of a Supermarket, Wants to Estimate

question 111

Multiple Choice

John Davis, a manager of a supermarket, wants to estimate the proportion of customers who use food stamps at his store. He has no initial estimate of what the sample
Proportion will be. How large a sample is required to estimate the true proportion to
Within 3 percentage points with 98% confidence?

• A) 756
• B) 1,067
• C) 1,849
• D) 1,509

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Raytheon

A major American defense contractor and industrial corporation specializing in weapons, military, and commercial electronics.

Mature

In the context of markets or products, it refers to a stage where growth slows down, characterized by high competition and saturated demand.

Treasury Sells Bonds

The act of the government selling debt securities to finance its spending, attracting investors with promised interest payments.